CH255020 - How to do a compliance check: Visits: Visit to private residences: When they can be done

Although it will not normally be necessary, sometimes you may need to carry out an inspection at a person’s private residence to address an identified risk.

The inspection powers in Schedule 36 Finance Act 2008 allow you to enter business premises. Business premises are defined as

• “in relation to a person, premises (or any part of premises) that an officer of Revenue and Customs has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person”.

CH25200 explains the meaning of “carrying on of a business”.

Private residences may fall under the definition of business premises where

• the business is run from the home
• business assets are stored at a home
• business records are kept at a home
• a home is registered as the principal place of business for VAT.

You have the right to enter and inspect those parts of a private residence that are used in connection with the carrying on of a business. You do not have the right to enter or inspect any part of those premises that are used solely as a dwelling.

Persons have a right to privacy, see CH21340. You should only make a visit to a person’s private residence if it is essential to checking the person’s tax position, and where it is reasonable and proportionate to the identified risk, see CH21360.

The procedures at CH251500 to establish and record the reason for the visit should be followed.

Examples of where visits to homes may be reasonably required are at CH255030.

Examples of when it would not be appropriate to visit a person’s home are at CH255040.

If a person stores records at home because there is nowhere else to keep them but has no goods or business activity at the home, then you should not normally inspect the records there. You may, however, visit the person’s home if they invite you to do so because it is convenient for them for you to inspect their records there.

If you decide you need to visit a home to inspect records only, you should obtain your line manager’s agreement. When arranging the visit, it should be made clear to the person that they can refuse to permit a visit and they should be provided with fact sheet CC/FS1 (PDF 66K) Compliance Checks - General information, not fact sheet CC/FS3 (PDF 58K) which is for visits undertaken using inspection powers.